The Saudi Fund for Development (SFD) has recently formalized agreements to provide financial support for two significant hydropower projects in Azad Jammu and Kashmir, as reported by Pakistani state media.
Under the leadership of CEO Sultan bin Abdulrahman Al-Marshad, the SFD delegation journeyed to Azad Kashmir to finalize the funding arrangements for the Shounter and Jagran-4 hydropower projects, which are expected to collectively enhance the national grid’s hydropower generation by 70 megawatts.
The Shounter hydro project is projected to produce 48 megawatts of electricity with an investment of $66 million, whereas the Jagran-4 hydro project, with an allocation of $41 million, will contribute an additional 22 megawatts to the grid.
Pakistan’s Special Investment Facilitation Council, conceived in June to magnetize foreign direct investment, was instrumental in orchestrating these agreements.
The SFD, an arm of the Saudi government, traditionally extends developmental support and financial assistance to emerging economies through a combination of loans and grants. The agency has a history of strengthening Pakistan’s foreign exchange reserves with deposits and backing assorted developmental initiatives across the infrastructure, education, and healthcare sectors.
Recent dialogues between Pakistani officials and the SFD have focused on potential collaborations across various domains, including energy, health, education, and infrastructure. Dr. Kazim Niaz, the secretary of Pakistan’s economic affairs division, emphasized the existing framework agreement with the SFD and indicated a robust pipeline of potential joint ventures.
While specific details on the forthcoming projects remain under wraps, the anticipation builds as Islamabad awaits Saudi feedback on a comprehensive list of initiatives proposed for investment and cooperation.